Memorandum of Understanding - MOU

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DEFINITION of 'Memorandum of Understanding - MOU'

A legal document outlining the terms and details of an agreement between parties, including each parties requirements and responsibilities.

INVESTOPEDIA EXPLAINS 'Memorandum of Understanding - MOU'

The MOU is often the first stage in the formation of a formal contract. An MOU is far more formal then a handshake and is given weight in a court of law should one party fail to meet the obligations of the memorandum.

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